Santana Raises A$130M at 8.6% Discount to Accelerate Gold Project Development
Santana Minerals has raised A$130 million through a two-tranche placement and plans a share purchase plan to accelerate development of its Bendigo Ophir Gold Project. The equity raise aims to fund early works, exploration, and equipment procurement ahead of final resource consents.
- A$130 million placement at A$0.90 per share with second tranche subject to shareholder approval
- Share purchase plan offered to Australian and New Zealand shareholders at same price
- Funds to accelerate Bendigo Ophir Gold Project development and exploration
- Directors to participate in placement; joint lead managers to receive fees
- Placement price represents an 8.6% discount to last traded price
Strong Capital Injection for Bendigo Ophir
Santana Minerals Limited has announced a significant capital raise of A$130 million through a placement of approximately 144.4 million new shares priced at A$0.90 each. This equity raise is designed to accelerate the development of the Bendigo Ophir Gold Project, a key asset in the company’s portfolio. The placement will be executed in two tranches, with the second tranche requiring shareholder approval at an extraordinary general meeting expected in late March 2026.
Share Purchase Plan to Broaden Participation
In addition to the placement, Santana plans to offer a share purchase plan (SPP) to eligible shareholders in Australia and New Zealand, allowing them to purchase shares at the same price as the placement. The SPP is subject to regulatory waivers or shareholder approval, reflecting the company’s commitment to compliance with ASIC and ASX rules. The maximum application amount under the SPP is capped to ensure adherence to these regulations and to avoid administrative complications.
Funding Use and Project Advancement
The proceeds from the placement and SPP will be directed towards several critical areas, accelerating early infrastructure and civil works, procuring long-lead plant and equipment, advancing exploration of near-mine and regional targets, and supporting general working capital needs. This funding is expected to enable Santana to move swiftly towards a final investment decision and to commence construction and pre-strip phases promptly upon receiving final resource consents, anticipated by the end of October 2026.
Market and Management Confidence
Executive Director and CEO Damian Spring highlighted the strong investor support as a vote of confidence in Santana’s strategy and the Bendigo Ophir project’s potential. The placement price reflects an 8.6% discount to the last traded share price, a common practice to incentivise institutional participation. Notably, company directors will also participate in the placement, signalling alignment of interests with shareholders. Canaccord Genuity and Bell Potter Securities are acting as joint lead managers, underscoring the transaction’s significance.
Next Steps and Shareholder Engagement
Santana will convene a shareholders’ meeting to seek approval for the second tranche of the placement and the SPP. The company has also indicated that the closing date for the SPP may be adjusted depending on regulatory outcomes. Investors will be watching closely for the EGM results and any updates on debt funding, which remains under negotiation to complement the equity component. The successful execution of these funding initiatives will be pivotal in advancing the Bendigo Ophir Gold Project towards production.
Bottom Line?
Santana’s capital raise sets the stage for a decisive push towards production, but shareholder approvals and debt arrangements remain key hurdles ahead.
Questions in the middle?
- Will shareholder approval be secured smoothly for the second tranche and SPP?
- How will ongoing debt funding negotiations impact the project timeline?
- What exploration results might emerge from the accelerated drilling programs?
